The Commerce Department reported (Wall Street Journal, Feb. 25, 2011) the sales of new homes declined 12.6% in January. New homes have faced tough competition from the resale market due to foreclosures. In previous years a foreclosure often needed work. In today’s market many of the foreclosures are move in ready.
The median price of a new home in January was $239,600. The median price for a previously owned home was $158,800 according to the National Association of Realtors. The resale cannot be compared to the new home, but a home a few years older than the new home at a substantially reduced price, may offer you more bang for your buck.
BTW, mortgage rates dropped last week according to Freddie Mac’s weekly survey. The 30 year fixed rate was 4.95%.
Now is the time to purchase that home you have always dreamed about.